Gas Station Owner Told to Raise Prices

[pontifex]

Originally posted by: ScottSwingleComputers

Originally posted by: b0mbrman

Originally posted by: ZOXXO

Originally posted by: Black88GTA

discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.

Think multiple car family or small business.

Even then, how would a $50 card save him $100 per year?

He isnt saying that single card would, the program would have.

yeah. he bought the $50 card so he could get the discount on the gas. the card isn't for the gas.

 

[sswingle]

Originally posted by: Amused

Originally posted by: Pacfanweb
Wal Mart, Sam's, BJ's, anc Costco around here all give card holders a 2-3 cent discount on gas. Guess it's okay here.

Probably because they charge more for non-card holders, and the base price does not fall below the bottom threshold.

Thats what the guy in the article was doing though. Only 10% of customers got the discount.

 

[Pacfanweb]

Originally posted by: Amused

Originally posted by: Pacfanweb
Wal Mart, Sam's, BJ's, anc Costco around here all give card holders a 2-3 cent discount on gas. Guess it's okay here.

Probably because they charge more for non-card holders, and the base price does not fall below the bottom threshold.

Their "anybody" price is usually one of, if not THE cheapest in their area, then they give the discount to members.
Or in Wal Mart's case, you even get the discount if you just have even a Wal Mart gift card.

So their price without the card is the same or cheaper than nearby stations, and discounted if you have their appropriate card.

Maybe they're still not below the minimum price with the discount, and all the stations are ripping us off....I don't know.

 

[evilsaint]

Originally posted by: b0mbrman

Originally posted by: evilsaint
The Midwest has had some of the lowest gas prices in the nation for quite a few months now; what is this guy complaining about? o.0

Whether or not his intentions were good, his "deal" gave his business an unfair advantage over competing gas stations, and in effect, trying to save other people money, he probably ended up making more himself, in which case he screwed the other stations.

Isn't that how capitalism is supposed to work?

Not when it comes to limited-availability resources that the general populace have a dire need for...

*edit* Grammar.

 

[Firebot]

Originally posted by: b0mbrman

Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Common doesn't make it right...

Ugggh, things like price floors on gas just get me one step closer to bolting to Canada.

Gas is more expensive in Canada then the US. There's % gas tax on top of price floors here😀.

 

[SampSon]

Originally posted by: Black88GTA

discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.

I drive between 40K and 50K miles a year. Most of it is work mileage.

All this owner has to do is take the letter and get it enlarged to the size of a garage door.
Then post it on the front of his station.

 

[Crucial]

Originally posted by: Firebot

Originally posted by: b0mbrman

Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Common doesn't make it right...

Ugggh, things like price floors on gas just get me one step closer to bolting to Canada.

Gas is more expensive in Canada then the US. There's % gas tax on top of price floors here😀.

It's taxed here as well. By the state and federal govt. In fact here in WI the gas tax automatically increased every year until that law was finally repealed last year.

 

[mugs]

Originally posted by: BoberFett

Originally posted by: mugs

Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Pretty much. It's to prevent big companies from selling gas at unprofitable prices to drive the competition out of business so they can sell gas at higher prices.

Which is easily circumvented by the larger chains starting a company credit card that simply rebates a few cents per gallon of gas and we're right back where we started. Going after some mom and pop shop seems ridiculous.

It does seem ridiculous, but if they're going to have laws to protect mom and pop from the big guys, they have to hold mom and pop to the same standard.

 

[Darwin333]

Originally posted by: evilsaint

Originally posted by: b0mbrman

Originally posted by: evilsaint
The Midwest has had some of the lowest gas prices in the nation for quite a few months now; what is this guy complaining about? o.0

Whether or not his intentions were good, his "deal" gave his business an unfair advantage over competing gas stations, and in effect, trying to save other people money, he probably ended up making more himself, in which case he screwed the other stations.

Isn't that how capitalism is supposed to work?

Not when it comes to limited-availability resources that the general populace have a dire need for...

*edit* Grammar.

I wouldn't say that gasoline is a "limited-availability resource" in the US except during natural disasters and panics (Hurricane Katrina comes to mind). Thats not very relevant to the discussion though because states already have price gouging laws to cover situations like that.

Instead of legislating a minimum markup there should be a maximum markup. That takes care of the idea of a big company putting all the small gas stations out of business and then jacking up the price later.

I find it simply absurd that a company owner can not give a discount on a product that he sells at will. I don't like the idea of legislating maximum markups either but I do see the necessity when it comes to necessities like gasoline. But to tell a business owner that he can't give a relatively small discount to senior citizens or face a lawsuit is absurd.

 

[Vic]

Originally posted by: mugs

Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Pretty much. It's to prevent big companies from selling gas at unprofitable prices to drive the competition out of business so they can sell gas at higher prices.

Correct. It's a form of anti-dumping protection.